ITC will continue to deliver robust growth, says Puri
The company will also fortify and scale up new mega brands while investing in categories of the future, Puri said
KOLKATA: Diversified conglomerate ITC Limited on Wednesday said that the company will continue to deliver robust growth despite key concerns such as inflation.
The year gone by was marked by heightened volatility in the operating business environment, especially in the first half. Despite these challenges, which were also compounded by severe inflationary headwinds, Gross Revenue of the company grew by 22.7 per cent to over Rs 59,000 crores whilst EBITDA rose to nearly Rs 19,000 crores with an increase of 22 per cent.
Speaking at the company’s AGM virtually, CMD of ITC Sanjiv Puri said that in the FMCG space, the firm has nurtured 25 brands and the newer ones will garner an annual consumer spend of Rs 24,000 crore.
The company will also fortify and scale up new mega brands while investing in categories of the future, he said.
“Today, it is immensely encouraging that your company’s newer FMCG Businesses have garnered an annual consumer spend of Rs 24,000 crore. The carefully selected portfolio, with substantial headroom to grow, is estimated to have a total addressable market potential of Rs 5,00,000 crore by 2030, which is amongst the highest in the Indian FMCG space,” he said.
It is also ITC’s aspiration to take these FMCG brands to the overseas markets while the company continues to invest in future-ready capabilities to develop new markets with strategic partnerships, he added.
ITC launched 110 products during the year, Puri said adding that the company’s future-ready and purpose-driven businesses and brands are well poised to seize the opportunities and make a meaningful contribution to the national priorities.
“The company, in recent years, put in place an extensive strategy reset to architect structural drivers to shape the next horizon of growth and competitiveness,” he said.
He told shareholders that the company has built integrated consumer goods manufacturing and logistics (ICML) facilities across the country to create structural advantages.
The traditional business segment of cigarettes also recovered during the year with normalisation of economic activity and is now ahead of the pre-pandemic levels, Puri said, adding that the legal cigarette industry has been severely impacted by smuggled and tax-avoided products over the years.
“The company’s Agri Business demonstrated stellar performance with strong export growth in wheat, rice, spices and leaf tobacco,” the CMD said.
Regarding the hotels and hospitality business, the company had adopted the asset-right strategy that provides greater thrust on management contracts. It will soon open a new property in Gujarat named ITC Narmada. Puri said that the idea is to build ITC with a portfolio of future-ready brands and a future tech enterprise with investments in purposeful consumer-centric innovation, technology and a digitally-enriched smart ecosystem.
Regarding the paperboards, paper and packaging business, he said that the vision is on new vectors of growth.